For example, there's an nginx module that lets you use lua to configure the server logic. I'm presuming you don't need to have lua installed to use xmake (i.e. batteries included), otherwise you're a hundred percent correct.
https://github.com/xmake-io/xmake/blob/master/README.md#run-...
So, it would be a bit like if you built a build language atop Python, but rather than depending on Python, you made your whole build tool embed the entire CPython interpreter, pinned to some version. Lua is used in this way more commonly than Python is, of course.
So: xmake itself is just a C program with large submodules written in Lua, running inside that embedded Lua context. The upside here is that xmake's releases are just plain platform-specific native binaries that bundle everything you need, and that make no assumptions about your base system. This is a nice benefit in a build tool, as it aids in reproducible builds.
Anyway, a single executable makes it hard to argue, and in this case I agree with you and ggp.